14 DAY TRIAL // palmOne reported that revenue in its fourth quarter of fiscal year 2005, ended June 3, totaled $335.8 million, up 26 percent from the year-ago period and marking the eighth consecutive quarter of year-over-year growth. Quarterly revenue was up 18 percent sequentially.
The company also generated positive cash flow of $36.5 million from operations in its fourth quarter of fiscal year 2005.
"We're very pleased with the company's performance during the quarter and the fiscal year," said Ed Colligan, palmOne president and chief executive officer. "Our carrier and channel partners reported very strong sell-through on Treo smartphones for the quarter -- a 250 percent increase over the comparable quarter last year and 57 percent more than in the third quarter of fiscal year 2005."
Among the quarter's other business highlights was the expansion of Treo 650 smartphone availability in the United States with Verizon Wireless and with EarthLink Wireless; in Canada on the Rogers Wireless high-speed EDGE(2) network; in Australia with Telstra Mobile; in France, the UK and Switzerland with Orange; in Holland with KPN; in Spain with movistar (Telefonica Moviles Espana); in Italy with Telecom Italia Mobile (TIM); in Argentina on Personal's EDGE Network; in Mexico with Telcel's EDGE network; and in Venezuela through Digitel TIM -- most of which involved carrier customization prior to commercial availability.
In addition during the quarter, the company also:
- Introduced the Tungsten E2 handheld, featuring Bluetooth wireless technology, to build on the popular Tungsten E, which had been the top-selling handheld in all U.S. channels for 18 months, using data from The NPD Group. Combined sales of the Tungsten E and Tungsten E2 accounted for approximately 22 percent of the total U.S. retail market in April and May 2005; - Created a new category of mobile-computing device for business productivity and entertainment applications with the introduction of the LifeDrive mobile manager. It features a hard drive and two wireless technologies, Wi-Fi and Bluetooth; - Realized carrier- and channel-reported sell-through to end-user customers of 442,000 Treo smartphones vs. 126,000 in the comparable quarter last year and 282,000 in the third quarter of fiscal year 2005; - Acquired full rights to the Palm brand, ending co-ownership of the brand with PalmSource, Inc; - Extended the license for Palm OS, ensuring the capability to develop Palm Powered products through 2009.
"We concluded 2005 with very good results across virtually every key financial metric," said Colligan. "We introduced several innovative products, and we enter fiscal year 2006 with an optimistic outlook for continued growth and profitability."
The company will adopt a new name, Palm, Inc., on July 14, 2005, and begin trading on the Nasdaq exchange with a new ticker symbol, PALM.